AUD Holds Steady on Surprise Trade Balance Surplus

The Australian Dollar (AUD) held steady against its US counterpart after the release of the country's Trade Balance data for June. The AUD/USD pair traded around 0.7060 during Asian hours on Thursday, unchanged from the previous day.

The data showed a notable turnaround in Australia's trade balance, shifting to a surplus of A$1,929 million month-over-month (MoM), exceeding market expectations of a deficit of A$1,100 million. This was driven by a 9.6% MoM increase in exports and a 0.2% decline in imports.

The US Dollar faces headwinds from declining safe-haven demand, which could lead to further appreciation for the AUD/USD pair. The Strait of Hormuz shipping route agreement between Iran and Oman has boosted expectations for increased Middle Eastern energy flows, further weakening the USD.